While this confusion can be time-consuming for the consumer, this inefficiency can be devastating to the productivity of any business with a transportation or delivery component. For the major freight companies and transportation companies, optimization of routing is so significant that software that performs routing as part of overall transportation logistics has been a necessity for some time. In fact, some of these companies have innovated internal systems and now even resell their homegrown solutions in a repackaged and modularized form (think UPS).

 

For the smaller business, mapping software with routing functions has been previously cost-prohibitive. This is not true any more. Equally critical is that now the resources involved in the delivery of service process are too costly not to be used effectively. The drivers of adopting this technology include employee time, fuel, vehicle availability, and vehicle maintenance associated with any route function.

 

Mapping. The pace of adoption of mapping software has evolved thanks to the popularity of software by Mapquest.com and Microsoft. Mapping software, with greater functionality than telling you how to get from place to place, can be appropriate for many types of businesses. Examples include those with routing requirements, territory management for sales development, and basic trucking needs. Some off-the-shelf solutions exist that interact with dispatch management software for more dynamic and less regular stop needs like a messenger service. Others focus on a more static, regularly-scheduled routes, like those of a first aid services company or beverage distributor.

 

Routing. The need for help of better management of routing for regular routes is especially common. Recently, I had a conversation with Bruce Hanson, who focuses on GIS, geographical information systems. As President of Visual Marketing Solutions, Bruce has developed and implements clients on one of the lower cost mapping solutions, Eagle Eye Routing (EagleEyeRouting.com).

 

How the software works. When using routing software there are usually five steps:

 

1. Interchanging the data from other information systems into the routing software. Of course, the goal should be to automate this function, including the ability to update customer and prospects lists, without damaging work done within the routing software. Information commonly copied from other systems into the routing software includes customer name, full street address, customer identifier (number), route number / salesperson number, volume fields (sales, quantity, period-to-date, year-to-date, prior year), last service date, and frequency of service or visitation.

2. Geocoding. This process matches an address to its standardized mapping coordinates. The format used is either decimal, which is increasingly popular, or the more traditional degrees format. The geocoding may be accomplished using powerful mapping software with a geocoding engine, manually pinning the address to a map, or even using a GPS (global positioning system) device that captures stops and then exports the data into your other information systems.

3. Optimization. This step involves defining the boundaries of service by salesperson or route driver. Accounts may be transferred, schedules may be adjusted, and boundary lines may be redrawn.

4. Sequencing. This step focuses on making the optimized territory the most efficient. Sometimes using rules-based guidelines, the goal of this step is to determine the best way to make the stops on the route - by day, week, or other criteria. Time restrictions for stops (i.e. only before 4 a.m. and after 3 p.m.) and other customer or prospect driven factors are built into the sequencing.

5. Reporting. This step represents a usable end result of the previous four steps. During this phase, schedules and maps may be printed and manifests and call lists may be prepared for the end users.

 

Doing it right. Before deciding on a solution, you must decide how you will be using this type of software. Questions to be answered include:

Routing software can be yet another tool in your arsenal to maintain competitiveness and profitability.